Specific goals of this study of the national dropout problem are to: (1) define the problem; (2) identify demographic characteristics of dropouts; (3) describe economic and social consequences; (4) identify programs and practices that prevent students from dropping out; (5) identify federal and state initiatives; and (6) identify private sector responses to the dropout problem. Reports published by federal agencies and recent research studies are reviewed, as are grant applications under the School Dropout Demonstration Assistance Program and programs funded by the Federal Government, states, and private agencies. In the United States, 400,000 to 500,000 young people aged 16 to 24 years drop out of school each year, and an additional 80,000 to 120,000 youth aged 14 and 15 years also drop out annually. These rates have historically been higher for minorities than for non-minorities, but the gap is narrowing. Strategies advocated to address dropping out have been program reforms and schoolwide reforms. Characteristics of both approaches that have been successful are noted as they have worked in government or private sectors. Nine successful programs, school dropout prevention programs and recovery programs, are examined in depth. Research makes it clear that the dropout problem is multidimensional and requires a variety of approaches. Nine tables present details about dropout rates and characteristics. There is a 52-item list of references. (SLD)